Potential home buyers without big money are left on the sidelines.
in turbocharged housing marketprices rise and homes on the market usually sell for well above the listing price. Those who cannot afford large down payments often lose out.
Half of existing home buyers who used mortgages lost at least 20% in April, according to a survey by the National Association of Realtors. For 10 years of keeping records, this percentage has reached or exceeded 50% three times, and all this since last fall. A quarter of homebuyers paid in cash in April, highest level since 2017, – said the NAR.
Oscar Reyes Santana has been looking for a home with his parents and siblings for over a year in California’s San Fernando Valley. All of them are buying for the first time and their budget is 5% down payment.
The family bet on at least five houses, each time offering at least $ 30,000 above the asking price, but each time they lost, said Mr Reyes Santana, 23.